June 4th, 2013
As you know, superstores including Walmart, Carrefour, Tesco were studying the policy riders for 51% FDI in multibrand retail. As the DIPP received a number of queries from superstores, a multi-ministry meeting of concerned officials is being held today in DIPP to issue clarifications.
It is likely that the DIPP
– Would ask global superstores to invest 50% of only the first tranche of investments (minimum $100 million) in back-end infrastructure.
– Would declare that the 51% foreign direct investment limit in multi brand retail is composite one, including FDI and foreign institutional investment (FII).
– Would allow superstores to create back-end infrastructure in states that do not allow any FDI in multi-brand retail. As of now only 11 states have agreed to allow global retailers. Yesterday the new govt. of Himachal Pradesh announced its agreement with FDI retail policy.